Sam's mortgage payment is $750 per month. He also has other monthly debt payments of $440. If his monthly after-tax income is $3,950, what is Sam's debt payment ratio?

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Quizplus · Accepted Answer

Sam's total monthly debt payments are $750 + $440 = $1,190. His debt payment ratio is calculated by dividing his total debt payments by his monthly after-tax income: $1,190 / $3,950 = 0.3013, or 30.13%.

Sam's Mortgage Payment Is $750 Per Month